Senior Republican officials reached out to Commerce Secretary Howard Lutnick on Tuesday after a new crypto super PAC linked to his former firm indicated plans to spend $1.75 million backing Texas Attorney General Ken Paxton in a contentious GOP primary runoff, according to multiple sources familiar with the matter who spoke to Axios.
The intervention by GOP leaders underscored their concern that Fellowship PAC, which is associated with Tether and seeded by Cantor Fitzgerald, was entering a high-stakes race where former President Donald Trump has avoided taking a clear position between Paxton and incumbent Senator John Cornyn. The National Republican Senatorial Committee (NRSC) publicly criticized the move, with spokesperson Joanna Rodriguez stating that backing the candidate who finished second in the state primary risked handing Democrats a Senate seat and constituted “pure political malpractice.”
While Lutnick divested from Cantor Fitzgerald last year and his sons now lead the firm, senior Republicans appealed to him personally to reverse what they described as a political misstep. Chris LaCivita, Trump’s former campaign manager and a key figure in Cornyn’s allied super PAC, echoed the sentiment publicly on X, formerly Twitter, writing: “This was not a smart move.”
By Wednesday midday, Republican leaders expressed relief after confirming that Fellowship PAC had not placed any ad buys despite the FEC filing indicating planned spending. Multiple sources told Axios that the PAC had not aired pro-Paxton advertisements and was not preparing to do so, a claim supported by AdImpact media tracking data showing no political ads from either Fellowship PAC or its advertising partner, Nxum, during the 2026 cycle.
Jesse Spiro, who chairs Fellowship PAC and serves as Tether’s head of government affairs, did not respond to requests for comment on the record.
Fellowship PAC’s Funding and Ties to Cantor Fitzgerald
Fellowship PAC reported raising $11 million by mid-April 2026, including a $10 million contribution from Cantor Fitzgerald and $1 million from Anchor Labs Inc., a crypto infrastructure firm that collaborates with Cantor Fitzgerald, according to FEC filings reviewed by Axios. The PAC had announced in January its intention to raise $100 million for the 2026 election cycle.
The $10 million from Cantor Fitzgerald represents a significant portion of the PAC’s early funding, though Lutnick is no longer involved in the firm’s management following his divestment prior to becoming Commerce Secretary. His sons continue to oversee Cantor Fitzgerald’s operations.
Context: Crypto PAC Spending in Recent Elections
Cryptocurrency industry political committees played a substantial role in the 2024 elections, spending between $120 million and $130 million overall. Fairshake, the industry’s largest PAC backed by Coinbase, Ripple, and Andreessen Horowitz, contributed approximately $40 million to defeat then-Senator Sherrod Brown in Ohio and entered 2026 with nearly $200 million in reserves, according to Axios reporting.
Fellowship PAC’s emergence adds to a growing landscape of crypto-aligned political action committees seeking to influence federal and state races, particularly as digital asset firms navigate evolving regulatory frameworks under the Biden administration and prepare for potential shifts under a future Trump administration.
Verification and Next Steps
The FEC filing that initially showed Fellowship PAC’s planned $1.75 million expenditure in Texas remains publicly available through the FEC’s document query system under committee ID C00915181. No further amendments to the filing indicating actual disbursements have been reported as of mid-April 2026.
Republican leaders have not indicated whether they will continue monitoring Fellowship PAC’s activities, though the NRSC’s public statement suggests ongoing scrutiny of crypto-aligned spending in key Senate races. The Texas GOP primary runoff between Paxton and Cornyn is scheduled for May 24, 2026, with the winner facing Democratic nominee Rochelle Garza in the November general election.
Readers can track official campaign finance disclosures through the FEC’s website or consult state-level reporting via the Texas Ethics Commission for updates on political advertising and contributions.
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